Bitcoin’s solid April performance has attracted attention, and Galaxy Digital says investors are beginning to rethink their role in the portfolio.
As Bitcoin (BTC) struggled to find direction amid a rise in new tariffs and growing policy concerns in April, Bitcoin (BTC) quietly rose 11%, outperforming gold, tech stocks and even the US dollar, raising new questions about its role in today’s market, analysts at Galaxy Digital wrote in a recent research report.
Galaxy Digital said this could be a sign that investors are beginning to treat Bitcoin as “less as a speculative vehicle, as a strategic, long-term allocation.”
“This shift is particularly obvious when you look at the fund’s flow. Spot Bitcoin ETFs registered in the US saw a net inflow of $2.9 billion in April, and a sharp reversal from around $4.4 billion in February and March.”
Galaxy Digital
In early April, US President Donald Trump announced the so-called “liberation day” tariffs, causing market volatility. The Nasdaq flattened, with the Bloomberg Dollar index falling almost 4%, but gold jumped 5.75% before retreating. However, Bitcoin led the pack with double-digit profits, showing lower volatility than the S&P 500 and Nasdaq 100.
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Ian Kolman, director and co-portfolio manager of Galaxy Digital, says that Bitcoin’s supply and demand dynamics “consolidate its location as a valuable, mature digital store.” The New York-based company has pointed out that the 30-day correlation between Bitcoin and the S&P 500 and Nasdaq remains high, but its beta is declining, suggesting that its sensitivity to market stress is declining, with some movement with the stocks.
Galaxy Digital suggests that these trends reflect “a wider readjustment” by investors who are currently opposed to “systematic concerns,” ranging from political interference in the Federal Reserve to the long-term sustainability of US fiscal policy.
As of press time, Bitcoin is trading at $102,795, up 9.17% over the past week, per crypto.news price tracking page.
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